Clifford Chance

The PSC Register Regime: Consequences for banking transactions

18 May 2016

Since the 6th April 2016, all UK incorporated companies (that are not exempt) and LLPs are required to keep a register of individuals and/or certain legal entities with "significant control" over them.

At first sight, this may appear to be no more than another corporate information requirement like keeping a register of members and a register of directors. However, from a banking perspective, the PSC register regime goes much further than this.

In particular, security may not be able to be taken or enforced over shares in a company with a PSC register if the PSC register regime has not been complied with and a restrictions notice has been issued. Finance parties may also need to be registered on a company's PSC register, as well as actively provide information on their interests in the company, unless they fall within specific exemptions.

This briefing provides a high level overview of what those operating in the syndicated loans market need to know about the PSC register regime and outlines the consequences of the regime for banking transactions.

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